Govt sets up panel to review CSR framework under companies law

A high-level panel, chaired by Corporate Affairs Secretary Injeti Srinivas, will review the existing framework for Corporate Social Responsibility (CSR) activities under the companies law, according to an official release.

Additional Solicitor General P S Narasimha, Tata Sons Chairman N Chandrasekaran, Arjuna awardee Prakash Padukone and Chairman or representative of markets regulator Sebi are part of the 11-member committee.

Certain class of profitable entities are required to shell out at least two per cent of their three-year average annual net profit towards CSR activities under the Companies Act, 2013. The provision came into force from April 1, 2014.

The panel would review the existing framework and guide and formulate the road map for a coherent policy on CSR.

The release said the committee would "analyse outcomes of CSR activities/ programmes/ projects and suggest measures for effective monitoring and evaluation of CSR by companies. Suggestions are also expected on innovative solutions, use of technology, platform to connect stakeholders, and social audit," the release said Friday.

According to the Corporate Affairs Ministry, which is implementing the Companies Act, the four years of implementation have enabled compilation of data on the number of companies complying with CSR provisions, funds allocated and spent across various sectors, and geographical spread of CSR spending, among others.

"Experience has also been gained on the quantum, outreach and impact of CSR (which is estimated to be around Rs 38,000 crore up to FY 2016-17) and immense feedback has been received on how CSR provisions can be leveraged to have larger and more impactful outcomes," the release said.

Bain Capital Private Equity's MD Amit Chandra, Helpage India CEO Mathew Cherian, IIM-A Professor Anil K Gupta, Director General of the Indian Institute of Corporate Affairs (IICA), consultant S Santhanakrishnan and a Joint Secretary from the ministry are also part of the panel.

The committee would submit its report within three months from the date of holding its first meeting, the release said.